one 5 p.m. here in sydney. welcome to bloomberg markets asia. here are the top stories. asian stocks muted slowly is subdued session on wall street. investors vision for this and the u.s. inflation data. they take their caps off the ai futures. elon musk responded by threatening to ban apple devices from his companies. plus india's new government looks into what might be going on. all his multi opsware policy continuity. let's have a look at how markets are very. abraham is in singapore. >> the fed dos, the doj but even at of all that we are seeing chinese equities coming back from holiday, they are paying -- playing catch down there are the

concerns about the property sector but also potential u.s. action on a major chinese battery maker so sentiment there is really negative. we are seeing the dollar continued to climb in the onshore again has hit its weakest level against the greenback since november. the austrian sitting about 727. we are seeing today where it is on the board. they are taking a hit on some of the apple suppliers after the annual event came in on a i wise. that sort of shifted the needle. these are the stocks that are coming under pressure today. outlier, tsmc after its sales are seen as positive and good hope to hit the top end of the guidance for the current order. as i say it is risk off. it is really looking into those key events later this week all.

quick thank you. let's get some more on the trading day so far. as avril was saying, risk off marcus to some degree are going sideways. one does get the sense that traders are waiting for something. >> they don't seem to be waiting very much in the hong kong markets. they seem to be in a pretty foul mood today. that is partly a continuation of some of the themes such as property that have been going on for some time but also the huge company ccl is not even listed in hong kong but it is widely held by portfolio managers. people are looking to make up the losses elsewhere. that is part of the reason why you have seen this as heavyweight. this is all come before even as the fed starts to speak. there is the risk that the fed would be more hawkish.

this is an ideal opportunity for them to really get it down to one dot plot on the current three. the reason why they would be more confident is usa -- u.s. equities are doing so well. they don't have to worry but if they become a little bit hawkish, the u.s. equity market will go into a tailspin. that can easily be absorbed. it is already at a high point anyway. they don't need to be concerned. markets have largely priced it in as well. they can really take this opportunity and rather than just moving to two. plus, they may move to just one this week. >> we had a really strong labor report. we are getting cpi numbers before the fed needs. that is very sticky as well. there is a chance that one becomes known. >> probably a stretch too far.

and even central bank would want to watch those often. even if privately they may feel it is getting very difficult for them to reduce interest rates at all this year. as you say, the labor market is very strong. surprised everybody last week with the strength of the numbers. the cpi is not really doing what the fed wanted to it all. we may get another about part number this week. certainly the two key factors are not going in a direction which suggests the fed needs to bring interest rates down in a hurry. at the same time, having put themselves in a position in the beginning of the year when they were suggesting a few breakouts,. much more likely they will move to two or 21. certainly people will be looking into the fed meeting thinking the chances of them staying at three is very small.

>> let's waited the funston area. >> and think immediately it will be looking at the u.s. dollar. the dollar has been outperforming erratic. particularly china and the end. the major currency. and then mexico. we are seeing people start to come out of emerging-market currencies. the mexican peso has been a great carry trade. now it is being heard by the stronger dollar. chinese currency as well. trading pretty weak again today. the officer you want is close to the levels we saw back in march and at the same time because of the weather short-term interest

rates are going, we have the cpi coming up, china needs to maintain a very soft monetary policy. it won't take too much. if we get an outcome this week which is a strong cpi and a slightly hawkish fed, the dollar is going to be very strong and wish the you want to a point where the previously may have to decide it can't hold the line any longer. if the want goes, we will spin up to other emerging markets. people are watching the fed very closely to see what impact it has on both of you on any you want to some extent as well where the bank of japan is expected to do nothing this week which will be supported by the currency. request that was mark grenville there. thank you for joining us. mark mentioned investors in hong kong were in a foul mood. they don't seem to be in a particularly good mood in thailand either. lowered to the tune of about 1%.

we are seeing some comments about this, saying that the stock market sentiment may be affected by political risk. more clarity on the statement. presumably he is talking about the shock of election results. we are off by just a quarter of 1%. let's get some more analysis with our guests who think you may be possibility of delay in the fed's rate cut target. this is the head of the asian fixed income. thank you so much for joining us.

our efforts still elevated. what is that going to mean for the new set of dots were going to do? >> we are having a little bit of trouble with the audio there. we will try to fix up that line. fixed income. hope you're still there and you can hear me ok. i was just asking you about the we will get before the fed decision. the cpi is still elevated. what do you see the implications might be for the new set of dots were going to get? >> i agree with mark that we are probably going to get that reduced. hinting at one has may be a

possibility but that may be pushing into the fourth quarter. any cuts could be instituted that way. >> i want to turn to the bloomberg question of the day. it is connected to this idea of we on end up getting one cut from the fed this year but which asset class do you feel could be most impacted question mark >> i think right now the fixed income market will be the first one to have to readjust. in some ways it is starting to start moving in a direction. maybe more unexpectedly, the fact that the u.s. market has been very strong, they could also actually be something of a disappointment. i think we have to be watchful of these very strong asset classes started to live in this new reality of a much higher for

longer rates environment and actually affecting global assets classes generally. >> potentially fixed income the most effective. are you adjusting your strategy at all? >> i think we expect the volatility will continue. i think when we go into the second half of the year people will move away from fiscal policy. they would be much more in play. the people will be focused on that as well. that will also introduce volatility. having said that we think volatility may be good entry points. as markets tend to overshoot when people get a bit more from headlines. >> higher for longer is starting to become white embedded as a narrative. we even have a chart on the bloomberg here which is matching

emerging-market -- matching emerging-market currencies. highest of the year. when you were looking around the em fixed income space, what are you thinking mark -- what are you thinking? >> these higher for longer narratives are going to affect his currencies. there may be a bit more to come. having said that, there proceeded already. the next volatility could offer some good entry points as they start to press in that narrative. >> there is another macro risk factor coming up as well and that is the election towards the end of the year. do you feel like regardless of who wins, there is a risk of this that could reunite inflation and could be looking at inflation being the story of 2025 per cup. >> i think that is where people

need to recalibrate. asia could be a bit more attractive. this is something of a volatility gauge. just pure monetary policy. >> we do have another major central bank leaned toward the end of the week. we have ggp drifting higher end of that. why the inspector to be a day to produce his purchases but in terms of tightening, when you see that happening? how incremental do you think it's going to be? >> i think it has been quiet mixed. you would like to see the way she had to go a little bit higher but the consumer sentiment on the economy is somewhat weak. they were cautious.

you could have more constructive data on the domestic economy. having said that, depending on when the cpi goes up and what happens with the dollar, they may push the hand a little bit with the fact that the dollar would continue to strengthen and again would have to take a little bit of a backflip on that front. so i think this is going to be quiet and point for them today what happens with the cpi number for the u.s.. >> we do have begin weakening again. it is about 15725 at the moment. with that in mind, what do you think the chances are of a hawkish surprise from the doj? >> i think they can actually give a little bit more. even if they think they will keep rates unchanged for now, it may guide the market a little bit on reduction purchases etc.

instead of actually needing to move immediately right now. >> we are going to get ppi numbers out of town as well. i briefly wondered what your expectations are on that and what it means for china's growth out. -- growth outlook. quick services could incrementally grow up. domestic spending on tourism has actually been up but it looks like food inflation will be somewhat muted. i think from that point of view, deflationary concern is not going to be on the minds of the previously. but to get the pressure on the currency, we both mean that for monetary policy. all until we have is that a different picture from what the u.s. treasury will be doing.

>> thank you so much for joining us with your views. students come on bloomberg markets asia, we will speak with the president of willmar and get their thoughts on the recovery in the retail sector. that's coming up later this hour. first, apple got a bit of a lukewarm reaction on his long-awaited ai offerings excluding a type with chatgpt and look at his newest products, next. bloomberg. ♪

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would buyers offer powerful capabilities that provide the opportunity to take the experience of using apple products to new heights. producing apple intelligence. the new personal intelligence system that makes humorous personal products if you're more useful and delightful. >> that is tim cook they are speaking from the companies worldwide developers conference on its ai push. for more on what apple announced, the spring and mark berman. what were the highlights? >> thank you for having me. the highlight of the worldwide developers conference today is going to be apple intelligence. this is the companies do and and suite of air filters that is integrated throughout many of the core apps, services and already systems of the iphone, the ipad at the mac perko. you have a new control center on

the iphone and ipad. it is a pretty muted response so far. all of these ai features are catch up. they have to partner with openai to get most advanced form gender ai. this is jolly three. no break for new technology today. >> to these plans move the needle for apple as it looks to start competing more on the ai space? >> it doesn't move the needle for apple, it resets the needle that was apple in line with the competitors who had all of these ai features for several months now. they are not able to say hours are better than yours. maybe they are more deeply integrated. they are certainly going to have better privacy protections but now apple is playing the same game as everyone else and that is important. we were heading point coming to 25 were ai is so part of that

experience. now they will have that and they will be an evil player there on samsung. they certainly remained a laggard. >> a lot of people were watching this today. including elon musk. what was his view on this? question you want said that if apple ultimately shipped the new version in ios, he will require his employees to leave their phones at home. he does not believe that the iphone should be allowed inside the corporate offices of his companies. i find that absurd. i feel like the technology that is being developed thereby openai is across several different smartphone platforms.

he does raise a very salient point. there are major privacy implications offered via chatgpt and some of these other ai offerings. what did they do with the data marked are the building profiles of you? apple is able to put his brand on it in-house ai teachers. they can't really speak to what openai will do with that data. there have been many concerns about the way sam altman runs their company, the corporate governance model, what to do with their creation, helping monetize. some of those back in relationships. elon musk rose again point. i think that there are already people work at tesla and twitter. there are companies that don't like working there. i don't think that will create great office chemistry. >> interesting insights mark

berman. i can for joining us. we did hear from steve wozniak as he told us exclusively he is impressed with apple ai offerings and he says the success of the product are up to consumers. quick still believe strongly you should try and find out and after it's over, what works, what didn't, i am especially afraid if it is some sort of ai speaking for me. i want to be myself and be the one speaking but all of the ones today were you had a choice to circle some little area and let it go and do its magical wonders or rewrite something and you chose to do it. what it was supposed to do. that means you are looking at the result in determining as a human how that makes it work. this is one more type of ai, apple intelligence. i have ai myself. actual intelligence.

>> we are going to patent that one. how does your actual intelligence folder with the technology here russian mark was the developer since their teeth into this, what you envision as being the practical application and not just for the techniques out there but maybe some of those people who aren't as tech savvy but have seen others hype around ai over the past couple of years and want to know how they can use it or how it will factor into their monthly. quick short. in using my products, it is like using -- it is like saying i want to say something. i may have to go search for a certain picture. >> it sure makes it seem like a lot of that is going to happen automatically. exactly what you want. you often ask siri to do something with a very simple statement and see if he knows how to do it. if you ask something any human being would understand but slightly complicated, siri sometimes has trouble with it. i'm hoping to finally see that

improved. i like using siri an awful lot. i want to see a big improvement. >> there was steve wozniak speaking exclusively with permit bostic and alex deal. plenty more had. this is bloomberg.

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with the power of ai. >> let's take a look at eb stocks in china right now. getting kind of ugly out there. those shares connected. this is treated as their wedding provisional duties expected this week. also convicted to see atl shares dropping as much as 4.4%. this is after u.s. lawmakers suggested the chinese battery maker could be added to an

import ban this. the company saying an accusation that is connected to forced labor is groundless and completely false. eb stocks they are taking a beating at the moment. taking a look at gold stocks as well. the china central bank did not buy any gold last month. that moved into a massive spree. you can see go pulling back on these suffering as well. 8.6% at the moment. stay with us come up with more to come. this is bloomberg. ♪

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so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. >> welcome back. we have china markets heading to lunch.

we might need a stiff drink with lunch. the csi 300 right now of my about 1.2%. we have the eu to announce a potential tariff on chinese cvs. we have see atl shares dropping over 4%. down the low since march of 25. accusations groundless and false. a bit of weakness in chinese equities at the moment. let's check in on how markets are broadly faring. >> the 10% slump in the stucco chinese battery makers in the past two sessions i think is also waiting on hong kong's benchmark, the hang seng is also

played catch down today. pop by about 1.6% and this is a stock that is not figuring on the hang seng but given how is a big player in the greater china space as investors trimmed their exposure to limit what they have been seeing losses wise, that's going to affect what we see in the broader hong kong benchmark. we have seen the gauge there. the undivided been highlighting is how we have seen the diversions between the hang seng and the s&p 500. typically where we see this, it does not foreshadow good news for the hang seng. we are also keeping an eye on that double jeopardy event. the uscp and the fed and the later part of this week. we will be keeping a close watch on those china cpi numbers. they're expected to do so --

show consumer price games but for the fact we get prices, the deflation is expected to narrow boost in the commodity prices but the bottom line as our colleagues have been pointing out is that deflationary pressures persist. >> thank you very much. as china's economic recovery wobbles on, this remains a key focus. let's bring in the president of blue mark, one of the earliest and biggest retailers in china. thank you so much for your time. i just want to start by getting your views on the health of the chinese consumer. do you have any optimism around this? what is your outlook? >> hi. very happy to be here attending this.

china consumers are recovering a lot. we are looking at various changes and also innovations. they have played more -- pay more attention to technology. they are making them more efficient. good customer experience. that is actually the trend now. this event in singapore is about the same. we could hear people discussing this transformation. a lot of paid attention to gen z and seeing how these shopping behaviors are going. >> i do want to come to the story around digitization, ai in a moment.

i understand that overall the retail sector in china is moving heavily towards promotions at the moment. would you describe the environment as a price war and whether you do or not, how sustainable is it? >> retailers and operators are included e-commerce and they are getting more rational. it is not exactly that much of a work instead of bringing in a lot of interesting things like the livestreaming content. we ask the retailers -- we bring in new activities. it is a promotion but are simply a price promotion. instead we are looking at

keeping the everyday low price principle in the meantime. interesting shopping environments, the tracking the other generations of the stores. it is good to have this flexibility selecting online. then to do the whole delivery. also they could be picking in just structurally in the store and enjoy all these fun activities in the store. interaction in the stores. >> i think it was the end of last month. the other strategy of low prices every day. we have more than 500 items on the low-priced list. what sort of resources are you bringing to bear and does it have any impact on your profitability?

>> thank you. yes. we do sacrifice a little growth margin for the customers. it is not that severe. there is going to be a long-term strategy to keep the price low. in the meantime we improve the efficiency a lot. by using these digital technologies. that is tailor-made for retailers. to improve the entire efficiency by integrating all these retail activities including supply chain operation, everything into one system and then using a very

simple way like the mobile phone for the employees. that significantly improve the efficiency. ai technology has been key for us. we do have a lot of monitoring activities. all these could produce the labor costs to a significant level. >> you are employed digitization to keep costs under control. do you look to other markets as well for inspiration? are there any ideas you've seen from elsewhere that you're looking to bring them to? will that inform how your stores look in the future? >> our stores are becoming more

vibrant. we keep that as the retail. good quality, low price. the quality of the food. that is the key parts. in the meantime, it is important to access so customers could simply come to the stores or use the app to do these home deliveries. this practice have actually been more recognized by retailers. it is the back office efficiency that needs to be significantly improved.

saving cost, saving energy used. and for the front and interaction with the customers they need to be easy, entertaining and enjoyable for the customers. so these kinds of combinations have been widely recognized by retailers. yes. not just in china. china is doing this and also internationally. yes. >> over it. thank you for joining us today. let's get to breaking news now on the bloomberg terminal. this property developer has been wound up. it has the liquidation. it is another property developer that is in liquidation. we did have a new restructuring plan approved last year.

there developer was not able to keep up with that either. the company getting liquidated. there are property was in china continuing. still to come on bloomberg markets asia, and is finance minister will have more details on that and prime minister modi's other candidates. that is coming up next. is bloomberg. ♪

>> welcome back to bloomberg markets asia. you're watching india focus. this is just ahead of the open. we've seen pretty decent recovery in stocks. they recovered all of last week's wipeout. no malice after robin has been reported as india's finance minister. the move provides policy continuity at one of the world's fastest-growing economies. for more let's bring in our south asian economy editor in new delhi. some continuity here.

what does this mean? >> the prime minister has opted for policy continuity in his new cabinet. at one point of time there was a big fear that they didn't know how they would balance is due cabinet. it would be with the top four which is defense finance, ministry of external affairs as well as her ministry. well for people who had the job earlier will continue to be in that position which probably means this will ease the market concerns. also as a new person will come in and handle the job. things are mostly going to be the same. it also means the focus never finance minister is actually going forward. it could be on the upcoming budget.

she has a big bounty from the central bank and it remains to be seen how the money will be utilized. the focus going forward in terms of the economy will be broadly on pushing growth over the spending infrastructure, trimming fiscal deficit and spending. there was a fear that coalition partners were pressing very hard. what are some chunky portfolios. it looks like out of the 30 cabinet ministers, 25 positions stay with the bjp and only five have been given out to allies. >> this is the minister of corporate affairs. is there any significance to this dual role? >> yes. absolutely. the ministry of corporate affairs will be an important one to watch out for because we are expecting certain changes in

bankruptcy going forward. the governor wants to push through and make some of these more effective so the kinds of changes that will be brought in interval as the corporate affairs minister or something to be watched out for. >> all right. let's check how the indian markets are opening. about 20 seconds time. they suggested we were in for a positive day. finance minister reconfirmed in her role so policy continuity likely to deliver some reassurance there. we've also seen a positive couple of sessions for indian stocks following that big selloff we saw midweek. we saw a mixed picture around the most of it. kind of hard to get a read on things at the moment. the stock shifting around a

little bit. this is what we have seen across the region today. things going a bit sideways as we await those two big events in the united states of course. the cpr v-8 and just a few hours after that, the fed decision where will get a new set of dots as well. at least some comfort that there will be continuity in the finance ministry as we were discussing, reconfirmed as the budget comes up in july thanks. as we've seen, a rapid recovery for indian stocks after a near $400 billion wipeout sparked by narendra modi's narrow election victory. we'll get our senior agent equities reporter. investors confident about india's policy continuity and that is despite a coalition government. >> that is right. i think markets are making this

narrative. if you look at the recovery, it just took in death recessions to recover from that big selloff we had seen. if you look at that in context, previous possible shocks. let's say something like covid 2020 lows or even shorts of the hindenburg. all of these shocks. the indian markets took almost months to recover from them. but for elections, it just took them three days. investors are definitely very confident that policy continuity would be the norm. government is not going to stray away from carrying out reforms. look at the current picture. the majority of key heavyweight industries. they are also talking to french players.

that sets up the stage for policy continuity to continue from here. that is probably why markets are in a very excited stage. if you look at the smaller or even the mid-cap stocks, both of these segments of the market have seen widening of optimism. >> indian stocks still looking pretty expensive compared to their chinese peers. what is this mean for the india verse china rotation? >> it is very attractive. and it is possibly having equal valuations in china. even after the rally. but even if you look going into the elections, and this, it is largely a trade driven by global investors, global money. they have been telling india for about 2.5 months.

right now they are sitting on a net outflow of more than $5 billion. if you look at it from that context, the last two sessions have been nibbling back. early days to call for all of this. but think that we need to watch out. we understand why our reporting is what we need to watch out for with government on his budget and then we need to see what china delivers. if china knows better than india in context, this is very attractive but it is something you need to watch out for the next two months. at least until the end of july. >> thank you so much for joining us. it was over sagan asian equities reporter. that's take a look at our indian

markets. we have pretty much wiped out all of those losses we saw and then a little bit flat today. that selloff midweek has gone straight down the memory hole. more to come in a moment. this is bloomberg. ♪

>> the world's largest vaccine makers ramping up production capacity. they spoke exclusively with hazlitt almond for an upcoming episode of latitude. >> we will probably double our capacity over the next five years. we are selling around 1 billion and a half doses of vaccine at the moment that could be 3 billion doses in the next five years. it is just what i meant by that is it is not a linear growth. if there aren't many catchup campaigns or outbreaks, then you don't grow that much. suddenly there will be an outbreak or there will be a new vaccine that is launched and the budget is approved for that.

so countries can then procure those vaccines and that is when you see the growth. as these countries also increase their budgets, which is something important, the health care budgets we need to focus on. you're going to see a huge uptick of vaccines that can prevent a lot of these diseases. vaccines have proven again and again to be the most efficient tool in intervention. you don't want to be treated for a disease. you don't want to be hospitalized. if you can prevent all of that for a fraction of the cost. that is where you see the role of vaccines. even during covid you saw the lives they could say. >> it is not scaling. talk to us about plans to scale in terms of your malaria vaccine, your other vaccines. what is the three to five year plan? >> we built the capacity of

roughly about 100 million doses for each of the vaccines. right now, the demand for the malaria vaccines is not even have that. it is slowly picking up as they received the vaccine to use the vaccine. there is a lot of planning that happens at the introductory stage. in about two years time i think it will you -- they will reach a demand level that will be matched by the supply. very similarly there is a global shortage of the hpv vaccine as well. there are very few vaccine manufacturers producing this vexing because it is very complicated and difficult to make. over the next two to three years, that the events dispatch will also be sort of addressed with the supply going on and at the end of this year i think the government of india will start procuring the hpv vaccine for

our country. it could be around 20 or 30 million doses or something like that. the rest can go for exports in 2026. we are planning to scale up gradually that way. we have already been licensed and approved for both of these vaccines. >> that was the serum cer. -- ceo. let's take a look at how we are tracking on markets. keeping an eye on indigo in india. off by 2.65%. shares in the airline -- we have seen a big sale of shares. a bunch of trade. we don't mutely know the sellers are or the buyers but they are moving lower by about 2.4% at

the moment. we are watching china tourism stocks as well. because of some data coming in on how things looked over the long weekend. we just had a vested travel and traffic revenues up 3.64%. this is according to city analysts. the train showing weakening momentum. we are seeing china travel stocks suffering there. that is it from bloomberg markets asia. verizon's middle east and africa up next. this is bloomberg. music not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away.

the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai.

>> good morning.